Dictionary of Procurement Terms

A business arrangement in which two or more parties pool their assets to accomplish a specific goal or task while maintaining their distinct identities.

A prediction tool that incorporates intuitive judgments, opinions, and probability estimates. These forecasts are very subjective and are considered qualitative issues with no absolute resolutions.

A quality concept first perfected by the Japanese. Its basic tenet is the elimination of waste in the form of overproduction, unnecessary motion, transportation, excessive inventory, and production and labor time. The term has evolved to refer to when previously held maintenance, repair, and operating (MRO) inventory items are outsourced to JIT suppliers, who may provide next-day delivery. JIT generates best value through supplier partnerships that generate savings through reduced labor, inventory, production, and processing costs. (Business 2002)